March 26, 2020
SEC Provides Temporary Additional Borrowing Flexibility to Registered Investment Companies Affected by Coronavirus
On March 23, 2020, the SEC issued an order (1940 Act Borrowing Order) providing for temporary additional borrowing flexibility to certain registered investment companies (funds) affected by the outbreak of COVID-19 (Coronavirus). The 1940 Act Borrowing Order provides exemptions from certain requirements of the Investment Company Act of 1940 (1940…
March 26, 2020
SEC Provides Revised Relief to Assist Registered Funds Affected by the Coronavirus
On March 25, 2020, the SEC issued a revised order superseding a prior order from March 13, 2020 providing relief from certain provisions of the 1940 Act for registered investment companies (funds) whose operations may be affected by the coronavirus (1940 Act Order). The 1940 Act Order addresses: (i) the in-person…
March 25, 2020
SEC Staff Grants Temporary Relief to Support Money Market Funds
On March 19, 2020, the SEC staff (Staff) issued a no-action letter to the Investment Company Institute (ICI Letter) that provides relief to money market funds (MMFs). In the ICI Letter, the Staff will permit an affiliated person of an MMF (or an affiliated person of such person) that is…
March 12, 2020
Broker-Dealer Entities Fined $35 Million for Violations Relating to Inverse ETF Recommendations to Retail Investors
The SEC recently fined two dual registrant broker-dealers $35 million for violations involving inadequate compliance policies and procedures, unsuitable recommendations and failure to supervise arising out of recommendations to certain retail investors that invested in single-inverse ETFs. Single-inverse ETFs are ETFs that seek returns that are the opposite of the…
March 9, 2020
SEC Requests Comment on Fund Names Rule; Seeks to Eliminate Misleading Fund Names
On March 2, 2020, the SEC published a release seeking public comment on current requirements that restrict the use of potentially misleading fund names (principally, Rule 35d-1 under the 1940 Act (Names Rule)). The release notes that fund names are often the first piece of information investors see and that…
February 24, 2020
Blackstone Receives Order on Novel Exemptive Application under the 1940 Act
On February 19, 2020, the SEC issued an order granting an application for exemptive relief filed by Blackstone Alternative Investment Funds (Blackstone Trust) and Blackstone Alternative Investment Advisors LLC. The exemptive relief permits the Blackstone Trust’s board of trustees to approve new sub-advisory agreements and material amendments to existing sub-advisory…
January 24, 2020
Blackstone Receives Notice on Novel Exemptive Application under the 1940 Act
On January 21, 2020, the SEC issued a “notice” relating to an exemptive application filed by Blackstone Alternative Investment Funds (Blackstone Trust) and Blackstone Alternative Investment Advisors LLC (Blackstone). The application requests relief that would permit the Blackstone Trust’s board of trustees to approve new sub-advisory agreements and material amendments…
November 18, 2019
SEC’s Office of Compliance Inspections and Examinations Issues Risk Alert to Provide Observations from Examinations of Investment Companies and Observations from Money Market Fund and Target Date Fund Examination Initiatives
On November 7, 2019, the staff of the SEC’s Office of Compliance Inspections and Examinations (staff) issued a risk alert (Risk Alert) on the most frequently cited deficiencies and weaknesses that the staff has observed in recent examinations of registered investment companies. The Risk Alert also provides staff observations from national examination initiatives relating to money market funds and target date funds.
October 23, 2019
SEC Staff Issues Frequently Asked Questions Regarding Disclosure of Certain Financial Conflicts Related to Investment Adviser Compensation
On October 18, 2019, the SEC staff issued frequently asked questions (FAQ) about required disclosures of conflicts related to compensation advisers receive, such as 12b-1 fees and revenue sharing, for recommending certain investment products. In the FAQ, the staff of the Division of Investment Management discusses…
October 23, 2019
SEC Proposes Amendments to Exemptive Applications Procedures
On October 18, 2019, the SEC proposed rule amendments to establish an expedited review procedure for exemptive applications under the Investment Company Act of 1940 that are substantially identical to recent precedent, as well as a new informal internal procedure for applications that would not qualify for the new expedited…